Emerging markets see weakest flows since financial crisis-IIF

NEW YORK Jan 4 (Reuters) - Emerging market equities and
bonds suffered $3.1 billion in outflows in December, marking
their sixth consecutive month of retrenchment and the sector's
weakest year since the global financial crisis, according to the
Institute of International Finance.

The Washington-based group, one of the most authoritative
sources of data on investment flows to the developing world,
said in a report released on Monday that emerging market
equities had $7.1 billion in outflows, while emerging debt
markets had $4.0 billion of inflows in December.

The Federal Reserve beginning its interest rate tightening
cycle along with continued slips in commodities contributed to
reduced investor interest in emerging market assets, according
to IIF.

"A slowdown in growth as measured by our EM Growth Tracker
added to investor concerns, particularly against the backdrop of
the commodity price slump," said IIF.

The negative streak of flows out of emerging markets
initially was thought to have seen a break in October, when the
sector saw inflows of $13.9 billion. However, a revision of the
data showed that October also saw total outflows of $8.2 billion
and the sector had negative flows for the entire second half of
2015.

On a quarterly basis, outflows to emerging markets fell from
$33 billion in the third quarter of 2015 to $13 billion in the
last quarter of the year, the IIF statement said.

Total non-resident inflows fell to $41 billion in 2015 from
an average of $285 billion from 2010 to 2014, with equity flows
in 2015 totaling $13 billion and debt flows at $28 billion.
(Reporting by Tariro Mzezewa; Editing by Alistair Bell)